Release: Austindo Resources: Cibaliung gold project update

(29 November 2007)--Following the success of the Company?s recent Placement and Rights Issue, development activities have resumed at Cibaliung. The Company is aiming to achieve gold production at the earliest opportunity in 2008.

Highlights of the recent activity on site at Cibaliung are summarised below:

DECLINE DEVELOPMENT
? Decline development is continuing with total development now in excess of 525 metres;
? Development to the ore body is being undertaken on two headings to enable a greater volume of ore to be extracted. The remaining distance to the orebody is less than 120 metres on one heading and 75 metres on the other;
? Daily development rates over the last few months have not met expectations due primarily to machinery breakdowns. In order to address this problem, the delivery of a new jumbo drill rig and loader has been brought forward to early December 2007;
? Cover drilling will be undertaken as a precautionary measure to ensure that previous workings by artisanal miners will not affect the long term integrity of the Cikoneng Decline. This cover drilling is expected to take 2-3 weeks.
? Redpath of Canada has been engaged to provide further experienced mining supervisors for the development of the decline and ventilation shafts. The first is on site with the remainder of the team from Redpath expected to mobilise to site in January 2008;
? It is now envisaged that stockpiling of ore will commence during January 2008.

GOLD PROCESSING PLANT
? Discussions with PT Petrosea to refurbish and complete construction of the gold processing plant are well advanced. The scope of work, schedule and costs for the final phase are currently in the process of being finalised.

OTHER
? A revised financial model is currently being finalised to take into account updated development and construction costs and schedules.
? The Company is in advanced discussions involving certain senior management appointments. (end of release)